As December approaches, South African motorists are bracing for another round of fuel price adjustments. The latest data from the Central Energy Fund (CEF) reveals mixed news: a slight decrease in petrol prices, but notable increases in diesel and illuminating paraffin costs. This article provides an in-depth look at the expected changes, the factors driving them, and their implications for consumers.
Expected Fuel Price Changes
Based on the mid-November assessments, here are the projected adjustments:
| Fuel Type | Expected Price Change |
|---|---|
| Petrol 93 Octane | Decrease of 16 cents |
| Petrol 95 Octane | Decrease of 4 cents |
| Diesel 0.05% Sulfur | Increase of 39 cents |
| Diesel 0.005% Sulfur | Increase of 38 cents |
| Illuminating Paraffin | Increase of 39 cents |
Key Highlights
- Petrol Prices:
- 93 Octane is set to decrease by 16 cents per litre.
- 95 Octane will see a smaller reduction of 4 cents per litre.
- This slight relief may ease the burden on regular motorists.
- Diesel and Illuminating Paraffin:
- Diesel prices are expected to rise by 38–39 cents per litre, impacting industries like logistics and agriculture.
- Illuminating paraffin users will also face a 39-cent increase, which may strain households relying on it for cooking or heating.
Factors Adjustments
Fuel prices in South Africa are influenced by two primary factors:
1. International Oil Prices
The global price of crude oil is a significant determinant of local fuel costs. As of mid-November 2024:
- Brent crude oil is priced at $71.44 per barrel, reflecting moderate levels compared to recent months.
- Geopolitical tensions, global demand, and production decisions by major oil-exporting countries continue to drive fluctuations in crude oil prices.
2. Rand/Dollar Exchange Rate
The exchange rate between the South African rand and the US dollar directly affects the cost of imported crude oil. Currently:
- The rand is trading at R18.09 per US dollar, a relatively weak position.
- A weaker rand increases the cost of fuel imports, contributing to higher prices for diesel and illuminating paraffin, even as petrol prices slightly decline.
Comparing
To provide a clearer picture of the impact of the upcoming adjustments, here’s a comparison of November 2024 prices and projected December 2024 prices for inland and coastal regions:
| Region | Fuel Type | November Price (R/L) | Expected December Change |
|---|---|---|---|
| Inland | Petrol 93 Octane | R20.98 | -16 cents |
| Inland | Petrol 95 Octane | R21.30 | -4 cents |
| Inland | Diesel 0.05% Sulfur | R18.66 | +39 cents |
| Inland | Diesel 0.005% Sulfur | R18.77 | +38 cents |
| Inland | Illuminating Paraffin | R12.87 | +39 cents |
| Coastal | Petrol 93 Octane | R20.19 | -16 cents |
| Coastal | Petrol 95 Octane | R20.51 | -4 cents |
| Coastal | Diesel 0.05% Sulfur | R17.87 | +39 cents |
| Coastal | Diesel 0.005% Sulfur | R18.01 | +38 cents |
| Coastal | Illuminating Paraffin | R11.87 | +39 cents |
Implications
Motorists relying on petrol, especially 93 Octane, will benefit from the small decrease. While this reduction is modest, it provides slight relief amid rising transportation and living costs.
Rising Costs for Diesel
- Diesel Price Increases: This rise will directly impact logistics companies, public transport operators, and farmers, potentially leading to increased costs for goods and services.
- Illuminating Paraffin: Households dependent on paraffin for cooking or heating will face additional financial pressure.
December 2024 brings a mixed outlook for South African motorists. While petrol users may experience some relief, the increases in diesel and illuminating paraffin prices could create challenges for many sectors and households. Addressing these changes and their drivers, such as international oil prices and exchange rates, helps consumers plan for the month ahead. Staying informed will be key as fuel prices remain a significant part of household and business expenses.
FAQs
Why are petrol prices decreasing in December?
The drop is due to stable international oil prices and minor exchange rate impacts.
What is causing the diesel price increase?
The weaker rand and higher demand for diesel are driving the price up.
How is illuminating paraffin priced?
It depends on global oil prices and the rand/dollar exchange rate.
When will the new fuel prices take effect?
The adjusted prices will be implemented in December 2024.
How does the exchange rate affect fuel prices?
A weaker rand makes imported crude oil more expensive, raising local fuel costs.
